Federal News:

Federal infrastructure plan signed on by 5 Republican & 5 Democratic Senators: When formal negotiations ended in June between the Biden Administration and the Senate Republican caucus on new federal infrastructure spending, an effort to get traction materialized among a small group of senators led by Sen. Kyrsten Sinema (D – Arizona) and Sen. Rob Portman (R – Ohio).

On June 24, a bipartisan group of 10 senators (5 Rep., 5 Dem.) announced with the President the arrival at an agreed-upon $1.2T plan, including $579B in new spending on roads and bridges, as well as $65B for broadband expansion. This package includes authorizing the issuance of direct-pay municipal bonds for infrastructure investment, and the Republican caucus’ favored expansion of public private partnerships.

In the late evening of Wednesday, June 30, Governor DeWine signed the budget bill into law. The final enacted version had elements of particular interest to economic developers.

Below you can find a synopsis of these changes from Bricker & Eckler. Please note OEDA will be hosting a complimentary webinar in partnership with Bricker & Eckler on the new budget and its impacts on economic development later this month.

The date will be finalized soon and a save the date notice sent out shortly. Be sure to check your e-mail and the website in the next few days so you don’t miss this important webinar.

State News:

Senate leader on how to use State’s $5.4B ARPA Allocation: Broadband & Brownfields: Not counting any American Rescue Plan Act funds to local governments, Ohio is expected to receive approximately $5.4B in federal COVID-19 relief stimulus funds. At the time of this writing, Ohio has received half ($2.7B) from the U.S. Treasury in the first tranche of funding; the funds must be committed by September 30. We expect these funds to be appropriated by the Ohio General Assembly in a stand-alone bill, outside the scope of the pending state operating budget (HB 110).

Federal News:

(Formal) bipartisan talks ended as of June 8 for federal infrastructure bill:  President Biden cut off negotiations with lead Republican negotiator, Senator Shelley Moore Capito of West Virginia, via phone call on Tuesday, June 8.  He made clear the gulf between the Senate Republicans and the Administration was too wide; the last counter-offer from Sen. Moore Capito was to add $50B to her last infrastructure spend amount. 

The move to inject significant federal spending to the county’s network of roads, bridges, water pipes and other physical infrastructure now will proceed either (1) under the Senate’s budget reconciliation process to avoid the filibuster or (2) via a group of centrist senators who have been working separately on their own infrastructure plan.  President Biden called the latter group individually and urged them to find a solution.

State News:

State Controlling Board creates new fund accounts to accept federal stimulus:  On April 19, the Controlling Board approved Ohio OBM’s request for three new funds to accept the American Rescue Plan Act’s state and local government stimulus payments:

• State Fiscal Recovery Fund (5CV3) – To accept funds allocated to the state of Ohio from the State Fiscal Recovery Fund from the American Rescue Plan Act. Ohio is estimated to receive approximately $5.5B from the U.S. Treasury to be used for costs incurred through December 31, 2024.  Payments are to be made to the State from the U.S. Treasury within 60 days of certification of need by Governor DeWine.
• Local Fiscal Recovery Fund (5CV4) – To accept funds allocated through the State of Ohio from the American Rescue Plan Act to non-entitlement units of local government. Ohio local governments are estimated to receive $815MM in funds to be distributed within 30 days of receiving the funds to the local governments.  Counties and metro cities will receive Local Fiscal Recovery Fund allocations directly from U.S. Treasury and will not pass through the Ohio OBM.
• Coronavirus Capital Projects Fund (5CV5) – To accept funds allocated to the State of Ohio from the Coronavirus Capital Projects Fund from the American Rescue Plan Act. Ohio is estimated to receive $274MM to carry out critical capital projects directly enabling work, education, and health monitoring, including remote options, in response to the public health emergency. The U.S. Treasury is required to establish the application process for the funds no later than 60 days after the legislation’s enactment.